Significant new disclosure requirements commence for NSW businesses and intermediaries

Businesses operating in New South Wales are now subject to new obligations to make consumers aware of certain terms which may be substantially prejudicial to them, while those that meet the definition of “intermediaries” are also obliged to disclose commissions and referral fees.   On 1 July 2020, reforms to the Fair Trading Act 1987 […]

The NSW Government SME relief measures

In a bid to assist SMEs during the coronavirus pandemic the NSW Government has introduced new measures to support SMEs.   Relief for SMEs impacted by COVID-19 is being offered by both the Federal and State Governments. In this article, we review the measures recently announced by the NSW Government. These include a $10,000 grant […]

Banks extend small business relief measures to commercial landlords

retail

The Australian Banking Association (ABA) has announced that its member banks have agreed to extend their small business relief measures to businesses with total business loan facilities of up to $10M (increased from the previous $3M threshold), including commercial landlords of properties such as local shopping centres, pubs, clubs, and restaurants.   In this article […]

An SME’s guide to the Federal Government JobKeeper subsidy

The Federal Government’s “JobKeeper” subsidy for employees will transform the options available for small and medium businesses impacted by COVID-19.   The Federal Government, in an attempt to safely place the Australian economy into “hibernation”, has announced the introduction of a “JobKeeper” subsidy which will provide a payment of $1,500 per fortnight (before tax) for […]

Resigning directors beware: the importance of notifying ASIC

It is now more important than ever for companies to have effective systems in place to ensure that they notify ASIC of changes to their company within the prescribed timeframes.   In particular, as a result of recent amendments to the Corporations Act 2001 (Cth), if ASIC is notified of a director’s resignation after the […]

Key points on the new Federal Government economic stimulus package for SMEs

Last night the Federal’s Government economic stimulus package was passed by both Houses of Parliament. The stimulus package provides a number of new measures to support businesses affected by COVID-19.   The Federal Parliament passed the economic stimulus package was passed last night and should receive Royal Assent today or tomorrow. These new measures will […]

Do I need to be an Australian resident to become a company director or secretary?

The Corporations Act 2001 (Cth) (Act) contains various provisions relating to constitutions of Australian companies, such as the requirement for a threshold number of directors and secretaries to ordinarily reside within Australia. These requirements are often overlooked in the context of a merger, potentially placing the newly merged group at risk of breaching the Act. […]

Price is what you pay, value is what you get: negotiating M&A purchase price and adjustments

In a competitive M&A bid process, prospective purchasers are often required to enter into a term sheet and formulate an indicative purchase price without having had the opportunity to conduct thorough due diligence on the target business. The purchaser must instead rely on the limited information provided in the seller’s information memorandum or presentation deck. […]

Shareholder agreements and the penalty doctrine

Shareholder agreements will often contain a clause requiring a defaulting party to transfer its shareholding at an agreed price on the occurrence of a specified default event. Where the agreed price is less than the market value of the shareholding, the clause may constitute a penalty and be unenforceable. On one hand, courts have held […]